The Chinese sovereign bonds were pushed lower across the curve Monday after recent data showed that the country’s service sector grew to a highest since July 2015.

Also, the 10-year bond yields finally breached our previous forecast of 3 percent mark on Friday, hitting highest since December last year.

The yield on the benchmark 10-year bonds, which moves inversely to its price, rose 1 basis point to 3.03 percent, the long-term 30-year bond yield climbed 2 basis points to 3.41 percent and the yield on the short-term 2-year bonds bounced 3 basis points to 2.69 percent.

The Caixin/Markit services purchasing managers' index (PMI) rose to 53.1 in November on a seasonally adjusted basis from 52.4 in October. A reading above the 50-mark suggests expansion in activity on a monthly basis. The November number marked the highest for the survey since July 2015, Reuters reported.

On Friday, the China’s official manufacturing PMI rose to 51.7 in November, from previous 51.2 reading in October. The rebound in the headline index was driven by a rise in new orders and fall in inventory. Also, non-manufacturing PMI bounced to 54.7 in November, from prior 54.0.

Lastly, investors will remain keen to focus on this week’s economy data, highlighted by trade balance, consumer inflation and producer prices for November.

Meanwhile, People's Bank of China sets the USD/CNY reference rate at 6.8870, weaker than Friday’s 6.8794. The China's blue-chip CSI300 index fell 1.73 percent to 3,467.82 points and the Shanghai Composite Index dipped 1.28 percent to 3,202.43 points.